China must open markets

China must open markets

Kansas City Star: When China entered the World Trade Organization, it agreed to permit liberalized trade in mass-produced art — books, films and music. Instead, it stuck to its existing policy, which funneled foreign media largely through a network of distributors owned by the Chinese government.

The United States contested these curbs before the WTO and recently won the case. Even so, U.S. film producers and recording artists shouldn’t break out the champagne, or assume China will quickly comply with the ruling.

For one thing, China is considering an appeal. And while Hollywood won its argument on distribution, the ruling does little to curb piracy.

Victory for Apple

The panel did require Beijing to allow foreign companies to sell music over the Internet, a victory for Apple and others.

But China still limits the number of foreign films that can be distributed in Chinese theaters to 20 a year, not only to shield domestic filmmakers but to curb foreign influence.

Motion Picture Association of America Chairman Dan Glickman, the former Kansas congressman, agreed the ruling was far from “revolutionary.” But he said it could lead to better market access as well as improved profits, given that the Chinese movie distributors raked off a portion of box-office proceeds.

The WTO ruling is an important step in the right direction. But it’s not one that dramatically throws open the gates to China’s market.